Hello All
Im looking for at doing a 4 unit development site in Melbourne's eastern suburbs (sales of which seems to be doing well regardless of the doom and gloom in Victoria at the moment). Im also curently building a house in QLD mining down under at Company and unit trust structure so im wondering what sort of trust should I setup to buy the house and land and the eventually develop the 4 unit development which at this stage will sell all 4 or even a slight possibility of keeping one. My normal accountant charged me a heap to setup the previous structure (approx $3500 + plus taxes) plus then lobbed me a further $800 in help and advice that i obtained in the last 6 months which I wasnt aware was coming. I feel ive been taken for a ride.
So what structure should I use and who are the best companies people to use to help me set this up as I thought there would be some good recommendations from people on here. Ive also told my accountant for everything I do going forward I will be getting quotes so I know im getting a good competitive deal and what charges there are up front
Cheers
Dean
Hi DM
Structures depend on whether you are going to keep 1 or not. A trust structure is often a great way to go, just sounds like your setup costs were on the high side, If it was for only the trust, was anything else provided.
I would charge $3,500 for a Development site package but that includes
Trust with Corp trustee
Loan Agreement and Registered 2nd mortgage
Conveyance on the Purchase
1 hours advice on any related matter.
You have to be careful if using the same entity for developing and holding, that the ATO doesn't class you as developer and you lose access to the 50% CGT discount.
Don't know anyone in Melbourne sorry,
Darryl
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
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you need to get specific advice.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
i'm looking to buy something in the eastern suburbs. a unit / townhouse would be great.
i am looking around the glen waverley area? if your units are around there would be interested
Hi Darryl
How would you avoid being classed as a developer by the ATO, and thereby gain the 50% CGT discount?
Also, what benefit is there in setting up a trust for property development?
RPI wrote:Hi DMStructures depend on whether you are going to keep 1 or not. A trust structure is often a great way to go, just sounds like your setup costs were on the high side, If it was for only the trust, was anything else provided.
I would charge $3,500 for a Development site package but that includes
Trust with Corp trustee
Loan Agreement and Registered 2nd mortgage
Conveyance on the Purchase
1 hours advice on any related matter.
You have to be careful if using the same entity for developing and holding, that the ATO doesn't class you as developer and you lose access to the 50% CGT discount.
Don't know anyone in Melbourne sorry,
Darryl
Hi
I agree wtih Terry you need to get specific advice.
Separate entities for developing and holding is a good start.
Trusts can provide flexibility for distribution of income and capital as well as asset protection. But if you don't set it up properly neither will work.
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone MeProperty Lawyer & Town Planner
Hi Darryl
How would you avoid being classed as a developer by the ATO, and thereby gain the 50% CGT discount?
Also, what benefit is there in setting up a trust for property development?
Will depend on the Tax code you use in your Tax return and whether you can been seen to be doing it regularly enough off to be classified as a business.
It is the same with investors who buy and sell shares and want to try and claim the costs of education, publications and subscriptions etc. Trying to persuade the ATO you do it regularly enough to make it a business isn't easy if you only trade once a month or so.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Have your accountant advised you on the cons and pro of setting up a trust especially if your planning on selling 3 of the units??
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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